MGEA02H3 Study Guide - Opportunity Cost, Utility, European Cooperation In Science And Technology

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MGEA02H3 Full Course Notes
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MGEA02H3 Full Course Notes
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Knowledge summary: opportunity of something is the value of the next best alternative given up, in other words, it is the value that was sacrificed in order to obtain that thing. Explicit cost and implicit cost: opportunity cost has two parts, e. g. , opportunity cost of consuming burger. Instead of consuming burger, we can consume coke. The cost of buying the burger is the explicit cost. Opportunity cost of x = -dy/dx - units of y we have to give up if we want a little bit of x. Opportunity cost of y = -dx/dy - units of x we have to give up if we want a little bit of y. Summary of questions to be asked: opportunity cost calculation, obtain the ppf function, derive the first derivative the ppf. F"(x) = dy/dx: substitute the value of x to calculate the opportunity cost of x. Y = 8(400 x2)0. 5. dy/dx = 8*0. 5(400-

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